A leaked draft of the federal Aviation Customer Rights Charter, reported by The West Australian on 8 February, outlines mandatory compensation rules that would bring Australia closer to the EU’s famed EC 261 regime. Under the proposal, passengers on flights to, from or within Australia would receive automatic cash refunds for cancellations and fixed-tier compensation—ranging from AUD 150 to AUD 600—when delays exceed three hours.
Airlines and airports warn the scheme could triple complaint volumes overnight. Internal memos from two carriers viewed by the newspaper forecast an extra 40 full-time staff in customer-relations teams just to process claims. Budget airline Jetstar argues the flat-rate system ignores operational realities at remote regional airports, while Sydney Airport says compensation rules should apply only to airlines, not infrastructure providers.
![Draft Aviation Customer Rights Charter Puts Airlines on Notice Over Delays and Refunds]()
Consumer advocates welcome the draft but urge the government to legislate strict response-time limits and to give the planned Aviation Ombuds Scheme enforcement teeth. They note that 28 per cent of international flights into Australia were delayed in 2025, costing travellers an estimated AUD 185 million in out-of-pocket expenses.
For corporate travel buyers the charter could simplify duty-of-care: TMCs would be able to claim compensation automatically via GDS integrations, reducing manual refund chases. However, airlines are expected to recoup some costs through higher base fares and ancillary charges once the charter becomes law—likely in late 2026 after a consultation round that closes next month.
Mobility teams should track the consultation timeline and consider submitting feedback, particularly on the interaction between the charter and existing corporate fare agreements.
Airlines and airports warn the scheme could triple complaint volumes overnight. Internal memos from two carriers viewed by the newspaper forecast an extra 40 full-time staff in customer-relations teams just to process claims. Budget airline Jetstar argues the flat-rate system ignores operational realities at remote regional airports, while Sydney Airport says compensation rules should apply only to airlines, not infrastructure providers.
Consumer advocates welcome the draft but urge the government to legislate strict response-time limits and to give the planned Aviation Ombuds Scheme enforcement teeth. They note that 28 per cent of international flights into Australia were delayed in 2025, costing travellers an estimated AUD 185 million in out-of-pocket expenses.
For corporate travel buyers the charter could simplify duty-of-care: TMCs would be able to claim compensation automatically via GDS integrations, reducing manual refund chases. However, airlines are expected to recoup some costs through higher base fares and ancillary charges once the charter becomes law—likely in late 2026 after a consultation round that closes next month.
Mobility teams should track the consultation timeline and consider submitting feedback, particularly on the interaction between the charter and existing corporate fare agreements.
Source: The West Australian
